Which term refers to the financial obligation of paying back borrowed money?

The term that refers to the financial obligation of paying back borrowed money is "debt." Debt encompasses the total amount of money that is owed to lenders or creditors as a result of borrowing. When an individual or organization borrows money, they create a liability that requires repayment, often under specific terms that dictate when and how the money must be repaid. This financial obligation can arise from various sources such as loans, credit card balances, or other forms of borrowing.

In this context, understanding debt is crucial, as it not only represents the borrowed amount but also the commitment to repay it, often including interest. Interest is the cost of borrowing money, expressed as a percentage of the principal amount borrowed, which would be added to the debt. A loan is the actual amount of money provided to the borrower, whereas credit refers to the ability to borrow money or access goods and services with the promise of future payment. Thus, debt is the overarching term that encompasses these relationships and obligations.